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Petrol price September 2017 - Petrol prices to jump on Wednesday

Sep 4, 2017
Petrol price September 2017 - Petrol prices to jump on Wednesday

From Wednesday, cash-strapped motorists will have to dig deeper into their pockets as the Department of Energy confirmed stiff petrol and diesel price increases for September 2017.

According to the Department of Energy, petrol increase by 67 cents a litre while diesel will see a 44 cents jump - which is more than what the Automobile Association (AA) of South Africa had predicted.

A litre of 95 Unleaded petrol currently costs R12.56 at the coast and R13.05 in Gauteng.

The Department of Energy international factors, including the fact that South Africa imports both crude oil and finished products at a price set at the international level, including shipping costs, informed the fuel price increases.

It said that the main reasons for the fuel price adjustments are:

(a)   Rand/US Dollar Exchange rate - The Rand depreciated, on average, against the US Dollar during the period under review.

(b)   The prices of Petroleum Products in the International Markets - The international prices of petroleum products increased on average during the period under review. The main contributing factors were; (a) the increase in the crude oil prices and the weaker Rand, (b) Massive floods caused by the storm which forced several refineries to close along the U.S. Gulf Coast; and (c) Harvey, the most powerful hurricane to hit Texas in more than 50 years, caused large-scale flooding and forced closure of Houston port and several refineries. These resulted in the supply shortage in the market which led to higher prices of petroleum products

(c)   Annual Wages Increase for Forecourt Staff - The Minister of Energy, Ms Mamoloko Kubayi has approved an increase in the retail margin of petrol of 4.6cpl to cater for the salary increase of 8.0% for pump attendants and 7.0% for cashiers and 7.5% for other administration staff in line with the Motor Industry Bargaining Council (MIBCO) agreement of 18 November 2016. This money must be ring-fenced for the wages of the forecourt staff. 

Based on current local and international factors, the fuel prices for September 2017 will be adjusted as follows:

  • Petrol (95 Octane, ULP and LRP): 67.00 c/l increase;
  • Petrol (93 Octane, ULP and LRP): 67.00 c/l increase
  • Diesel (0.05% sulphur): 44.00 c/l increase;
  • Diesel (0.005% sulphur): 44.00 c/l increase;
  • Illuminating Paraffin (wholesale): 49.00 c/l increase;
  • SMNRP for IP: 65.00 c/l increase;
  • Maximum LPGas Retail Price: 86.00 c/kg increase

The fuel pricing schedule for the different zones will be published on Tuesday, 05 September 2017.